Som Distilleries & Breweries Ltd Falls to 52-Week Low of Rs.86.25

Stock Price Movement and Market Context

On the trading day, Som Distilleries & Breweries Ltd touched an intraday low of Rs.86.25, representing a 3.25% decline from its previous close. The stock’s day change was recorded at -2.41%, underperforming the beverages sector by 1.25%. This new low price is notably distant from its 52-week high of Rs.173.15, highlighting a substantial depreciation of nearly 50% over the past year.

The broader market, represented by the Sensex, showed resilience with a positive close at 82,381.16 points, up 0.04% after a flat opening. The Sensex remains approximately 4.59% below its own 52-week high of 86,159.02. Mega-cap stocks led the market gains, while Som Distilleries & Breweries Ltd, a smaller-cap entity, lagged behind considerably.

Technical indicators reveal the stock is trading below all major moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. This technical positioning often reflects investor caution and a lack of short-term buying interest.

Financial Performance and Valuation Metrics

Over the last year, Som Distilleries & Breweries Ltd’s stock has delivered a negative return of -15.08%, contrasting sharply with the Sensex’s positive 7.73% return and the BSE500’s 8.23% gain. This divergence underscores the stock’s relative underperformance within the broader market and its sector peers.

Despite the stock’s price decline, the company has demonstrated healthy long-term growth in its core operations. Net sales have expanded at an annualised rate of 37.49%, while operating profit has surged by 60.19% annually. These figures suggest robust top-line and profitability growth over recent years.

Return on Capital Employed (ROCE) for the half-year period stands at 15.79%, a figure that is moderate but indicates reasonable capital efficiency. The company’s operating profit to interest coverage ratio for the quarter is 8.17 times, reflecting a comfortable buffer to meet interest obligations despite rising interest costs.

Credit and Interest Burden Trends

Interest expenses have increased significantly, with the latest six-month figure at Rs.9.85 crores, representing an 85.15% growth. This rise in interest costs has exerted pressure on profitability margins and cash flows. The operating profit to interest coverage ratio, while still above 8 times, is the lowest recorded in recent quarters, indicating a tightening margin of safety.

The company’s market capitalisation grade is rated at 3, reflecting its small-cap status and associated liquidity and volatility considerations. The Mojo Score stands at 31.0, with a Mojo Grade downgraded from Hold to Sell as of 6 Nov 2025, signalling a cautious stance based on quantitative and qualitative factors.

Valuation and Peer Comparison

Som Distilleries & Breweries Ltd currently trades at an enterprise value to capital employed ratio of 2, which is considered very attractive relative to its peers. The stock is priced at a discount compared to the average historical valuations of comparable companies in the beverages sector. This valuation gap reflects market concerns despite the company’s solid growth metrics.

Profit growth over the past year has been modest at 7.7%, while the price-to-earnings-to-growth (PEG) ratio is elevated at 18.1, indicating that earnings growth has not kept pace with the stock price decline. This disparity may contribute to the cautious market sentiment.

Summary of Key Metrics

To summarise, Som Distilleries & Breweries Ltd’s stock has experienced a notable decline to Rs.86.25, its lowest level in 52 weeks. The stock’s performance contrasts with the broader market’s modest gains and the Sensex’s relative strength. While the company has demonstrated strong sales and operating profit growth, rising interest expenses and a downgraded Mojo Grade reflect challenges in maintaining momentum.

Trading below all major moving averages and at a valuation discount to peers, the stock’s current price level encapsulates a complex interplay of growth potential and financial pressures. Investors and market participants continue to monitor these dynamics closely as the beverages sector evolves.

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